free 60-minute consultation. Call us today!
free 60-minute consultation. Call us today!
Student loan debt doesn’t just show up on a statement. It shows up when you’re deciding whether to see a doctor. When you’re putting off having kids. When you’re still living with roommates at 35 because you can’t save for a down payment.
We’re Kain + Henehan, and we help people in Minnesota find real solutions to student loan debt. Not vague advice. Not generic tips you could find on a government website. We sit down with you, look at your actual loans, your actual income, and figure out what will actually work.
Most people don’t realize that federal student loans and private student loans operate under completely different rules. What works for one won’t work for the other. That’s where most borrowers get stuck. They try to apply a federal solution to a private loan, or vice versa, and nothing changes.
We handle both. We know which doors are open to you and which ones are locked. More importantly, we know how to get through the ones that are open.
If you’re reading this, you probably already know the numbers. The average Minnesota borrower carries over $30,000 in student loan debt. But averages don’t tell the whole story. Some of you are looking at $80,000, $120,000, or more. Some of you went to graduate school and the debt multiplied. Some of you never finished your degree but still have the loans.
Bill Kain and Margaret Henehan have over 60 years of combined bankruptcy experience and have helped hundreds of Minnesotans get back on their feet after getting weighed down by debt.
At Kain + Henehan, we love people. We never view your story as a source of shame or embarrassment. We truly care about our clients and want to help them live their best lives.
Bill and Margaret are respected among their peers and colleagues. Their positive relationships within the bankruptcy court system leads to positive outcomes for their clients.
This distinction matters more than almost anything else when it comes to finding relief.
Federal student loans come from the U.S. Department of Education. They include Direct Loans, FFEL loans, and Perkins Loans. These loans have built-in protections. Income-driven repayment plans. Forbearance options. Potential forgiveness after 20 or 25 years. The government has to follow specific rules before they can garnish your wages or take your tax refund.
Private student loans come from banks, credit unions, and other lenders. Sallie Mae. Wells Fargo. Discover. These loans operate more like credit cards or personal loans. They don’t offer income-driven repayment. They don’t have forgiveness programs. They can sue you faster and with fewer restrictions.
When you come to us, the first thing we do is figure out exactly what types of loans you have. Many borrowers have both federal and private loans and don’t realize they need different strategies for each.
Federal loans come in several varieties:
Each type has different rules about repayment plans and forgiveness eligibility.
Private loans vary by lender, but they generally fall into these categories:
Private loans almost never offer the flexibility of federal loans. But that doesn’t mean you’re stuck with unaffordable payments forever.
Let’s talk about what’s actually available to you.
Income Driven Repayment Plans
If you have federal loans, income-driven repayment (IDR) plans can drop your monthly payment dramatically. These plans calculate your payment based on your income and family size, not your loan balance.
The main IDR plans include:
We’ve helped clients reduce their payments from $800 per month to $0. Yes, zero dollars. If your income is low enough, your required payment under an IDR plan can be $0, and those months still count toward forgiveness.
Loan Consolidation and Rehabilitation
If your federal loans are in default, you have two main paths back to good standing.
Consolidation lets you combine defaulted loans into a new Direct Consolidation Loan. You immediately get out of default. Wage garnishments stop. You become eligible for IDR plans and forbearance.
Rehabilitation requires you to make nine affordable monthly payments over ten months. After that, the default is removed from your credit report. Your loan goes back to regular repayment status.
We help you choose the right option based on your situation. Sometimes consolidation makes sense. Sometimes rehabilitation is better. It depends on your loans, your income, and your goals.
Public Service Loan Forgiveness
If you work for a government agency or a qualifying nonprofit, you might be eligible for Public Service Loan Forgiveness (PSLF). After 120 qualifying monthly payments while working full-time for a qualifying employer, your remaining federal loan balance is forgiven. Tax-free.
The catch? The program is complicated. You need the right type of loans (Direct Loans only). The right repayment plan (IDR plans). The right employer. And you need to submit paperwork every year to certify your employment.
We’ve seen borrowers lose years of progress because they were on the wrong repayment plan or forgot to submit their annual certification. We make sure you’re on track from day one.
Private lenders don’t offer forgiveness programs, but they will negotiate. Especially if your loans are in default or you’re facing financial hardship.
We’ve negotiated settlements where borrowers paid 40-60 cents on the dollar to resolve private student loans. The lender gets something. You get out from under an impossible debt. It’s not always possible, but when it is, it can be life-changing.
You could try to handle this yourself. The forms are online. The information is out there. But here’s what we bring to the table.
We look at every option available to you. Not just the obvious ones. We find programs you didn’t know existed. We calculate what you’ll actually pay over the life of each repayment plan. We help you make an informed decision based on real numbers, not guesswork.
Loan servicers are not on your side. They’re not trying to get you the lowest payment or the best forgiveness option. They’re processing your paperwork and collecting payments.
We deal with them for you. We know what documentation they need. We know how to push back when they give you wrong information (which happens constantly). We make sure your applications are complete and submitted correctly the first time.
If your loans are in default and the government is garnishing your wages or withholding your tax refund, you have the right to a hearing. We represent you at these hearings. We argue for reduced garnishment amounts. We present evidence of financial hardship. We get garnishments stopped or reduced while we work on a long-term solution.
Getting into an IDR plan or forgiveness program isn’t automatic. You have to qualify. You have to apply correctly. You have to maintain eligibility.
IDR plans require you to document your income. PSLF requires you to work full-time for a qualifying employer. Parent PLUS borrowers have different options than Direct Loan borrowers. We make sure you meet the requirements before you apply.
IDR plans require annual recertification. Miss the deadline and your payment could jump to the standard 10-year repayment amount. PSLF requires annual employment certification. Skip it and you might lose credit for payments you’ve already made.
We track these deadlines for you. We remind you when recertification is due. We help you gather the necessary documents. We make sure you don’t lose progress because of a missed deadline.
If your loans are in default, the consequences are real and immediate.
The federal government can garnish up to 15% of your disposable income without suing you. Private lenders have to sue you first, but once they get a judgment, they can garnish up to 25% of your wages in Minnesota.
We stop garnishments. We negotiate payment plans. We defend lawsuits. We file bankruptcy when that’s the best option. We don’t let collectors take money you need for rent and groceries.
Can student loans be forgiven?
Federal student loans can be forgiven through IDR plans (after 20-25 years), PSLF (after 10 years for public service workers), or in rare cases through bankruptcy. Private loans don’t have forgiveness programs but can sometimes be settled or discharged in bankruptcy.
Will my student loan payment really be $0?
If your income is low enough relative to your family size, yes. Under the SAVE plan and other IDR plans, borrowers with very low incomes can have $0 monthly payments. Those months still count toward forgiveness.
What happens if I just stop paying?
Your loans go into default. Your credit score drops. The government can garnish your wages, take your tax refunds, and withhold Social Security benefits. Private lenders can sue you. Default makes everything worse and eliminates most of your options for relief.
Should I refinance my federal loans?
Almost never. Refinancing turns federal loans into private loans. You lose access to IDR plans, forbearance, and forgiveness programs. The only time refinancing might make sense is if you have a high income, plan to pay off your loans quickly, and can get a significantly lower interest rate.
You don’t have to figure this out alone. We’ve helped hundreds of Minnesotans find real solutions to student loan debt. We can help you too.
Call us. Tell us what’s going on. We’ll tell you what options you have. No vague promises. No sales pitch. Just honest advice about what will actually work for your situation. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.